DGAP-News

Infineon Technologies AG: REVENUE AND EARNINGS SLIGHTLY BETTER THAN EXPECTED - Seite 2

Infineon Technologies AG. "Infineon is performing very well in
next-generation technology areas with high growth rates: electromobility,
advanced driver assistance systems and renewable energy. In spite of a
weaker US dollar and a rather flat semiconductor market we are going to
show double-digit growth in revenues in the current fiscal year."

REVIEW OF GROUP FINANCIALS FOR THE SECOND QUARTER OF THE 2016 FISCAL YEAR

Revenue of the Infineon Group increased from EUR1,556 million to EUR1,611
million quarter-on-quarter. The 4 percent increase was driven in particular
by good revenue figures posted by the Automotive (ATV) segment. The
Industrial Power Control (IPC) and Chip Card & Security (CCS) segments also
recorded revenue growth, whereas Power Management & Multimarket (PMM)
segment revenue was slightly down on the preceding quarter.

The gross margin for the three-month period came in at 35.1 percent,
compared with 35.9 percent in the previous quarter. The second-quarter
figures include acquisition-related depreciation and amortization and other
expenses attributable to the acquisition of International Rectifier
amounting to EUR22 million.

Segment Result increased slightly by 4 percent from EUR220 million to
EUR228 million quarter-on-quarter, while the Segment Result Margin was 14.2
percent after 14.1 percent in the previous quarter.

The negative non-segment result for the second quarter amounted to EUR54
million, unchanged from the preceding quarter. Of this result, EUR24
million related to the cost of goods sold, EUR3 million to research and
development expenses and EUR24 million to selling, general and
administrative expenses. Other operating income and other operating
expenses amounted to a net expense of EUR3 million. The non-segment result
includes EUR49 million of depreciation and amortization arising in
conjunction with the purchase price allocation and other expenses for
post-merger integration measures in conjunction with the acquisition of
International Rectifier.

Operating income improved from EUR166 million in the first quarter to
EUR174 million in the second quarter of the current fiscal year. Income
from continuing operations increased to EUR177 million, compared with
EUR152 million in the first quarter. Income from discontinued operations
amounted to EUR3 million, compared with a break-even amount of EUR0 million
in the preceding quarter. Net income rose from EUR152 million in the first
quarter to EUR180 million in the second quarter, largely as a result of the
positive impact of tax income amounting to EUR21 million, resulting